Successful financial intermediaries have higher earnings on their investments because they are better equipped than individuals to screen out good from bad risks, thereby reducing losses due to

Related MCQs

• Financial intermediaries can substantially reduce transaction costs per dollar of transactions because their large size allows them to take advantage of
• In financial markets, lenders typically have inferior information about potential returns and risks associated with any investment project. This difference in information is called
• Financial intermediaries
• Which of the following financial intermediaries are depository institutions?
• Asymmetric information can lead to widespread collapse of financial intermediaries, referred to as a
• When maturities of liabilities and assets are mismatched and risk incurred by financial intermediaries then this risk is classified as
• Which financial body has asked intermediaries and companies to make regulatory payments in digital mode?
• If interest rates rise, the present value of any future earnings is bound to:
• They can be issued to individuals, corporations and companies during periods of tight liquidity when the deposit growth of banks is slow but the demand for credit is high.
• Intermediaries who are agents of investors and match buyers with sellers of securities are called